Obtaining a SOC 2 report requires an investment of both time and money for a service organization and, at some point, might seem like more work than it’s worth. However, the advantages to obtaining a SOC 2 report far outweigh the initial investment. Following are ten benefits:
1. Obtain an independent third party opinion on whether your organization complies with any or all of the Trust Service Principles (security, availability, confidentiality, processing integrity, privacy).
2. Gain a competitive advantage by applying advice to streamline processes and controls.
3. Management can gain a better understanding of how risk is addressed in similar organizations in the same industry.
4. Steer the organization’s operations to offer better services by better understanding the risk faced by clients.
5. Determine whether there are gaps in your organization’s control framework.
6. Differentiate your organization from others during the sales process.
7. User organizations that are concerned with security, availability, processing integrity, confidentiality and privacy are more likely to partner with service organizations that can provide a SOC 2 report; alternatively, those service organizations who cannot provide a SOC 2 report are likely to be at a significant competitive disadvantage when finding new and maintaining current clients.
8. Offer clients a report focusing on internal controls not related to internal controls over financial reporting.
9. Provide assurance to user organizations who outsource any IT systems performing critical operations that their service organizations have procedures and controls in place to provide constant and reliable services.
10. Ensure controls are appropriately designed and operating effectively to mitigate risks.